I.  Secured Loans (Schedule 3) Loans
 
 a) The term loans from banks and others are secured by an exclusive
 first charge on the specific assets.
 
 b) The working capital facilities from banks are secured by a
 hypothecation of stock of raw materials, work-in-process, finished
 goods, stores and spare parts and book debts of the Company. These are
 further secured by a second charge on the movable fixed assets of the
 Company.
 
 II.  Contingent Liabilities
 
 a) Guarantees
 
 (i) The Company has provided guarantee to third parties on behalf of
 its Subsidiary CFL Mauritius Limited - Rs.5,887.20 lakhs (2010:Rs.
 5,963.76 lakhs.)
 
 (ii) The Company has provided a guarantee towards the borrowing of
 Tunisian Indian Fertilizers S.A., Tunisia (TIFERT), a joint venture
 Company, up to Rs. 23,080.50 lakhs (2010:Rs. 23,380.65 lakhs).
 
 The amounts shown in the item (a) represent guarantees given in the
 normal course of business and not expected to result in any loss to the
 Company on the basis of the beneficiaries fulfilling their obligations
 as they arise. The amounts in item (b) represent best estimate and the
 uncertainties are dependent on the outcome of the legal processes
 initiated by the Company or the claimant as the case may be.
 
 III. Segment Reporting
 
 a) Business Segment
 
 The Company has considered business segment as the primary segment for
 disclosure. The Company is primarily engaged in the manufacture and
 trading of Farm Inputs, which in the context of Accounting Standard 17
 issued by the Institute of Chartered Accountants of India is considered
 the only business segment. In respect of retail business of the
 Company, since this is not material, disclosure of business segment
 information is not considered necessary at this stage.
 
 b) Geographical Segment
 
 The Company sells its products mainly within India where the conditions
 prevailing are uniform. Since the sales outside India are below the
 threshold limit, no separate geographical segment disclosure is
 considered necessary.
 
 IV. Leases
 
 The Company has entered into certain operating lease agreements and an
 amount of Rs. 1,514.69 lakhs (2010: Rs. 1,409.68 lakhs) paid under such
 agreements has been charged to the Profit and Loss Account. These
 agreements are cancelable in nature.
 
 V. Related Party Disclosures
 
 Information relating to Related Party Transactions as per Accounting
 Standard 18 notified under Section 211 (3C) of the Act.
 
 VI.  The Company has recognized subsidy income for the current year as
 per the Nutrient Based Subsidy (NBS) Policy announced by Government of
 India, effective April 1, 2010. Such income has been shown under
 Government Subsidies in the Profit and Loss Account. The subsidy
 income for the year includes Rs.22,652.00 lakhs (2010: Rs. 26,211.00
 lakhs) relating to previous years, following announcement /
 determination of the final rates of concession for the previous years.
 
 VII.  During the year, Government of India has decided to buy back the
 remaining Fertiliser Companies Government of India Special Bonds
 (Fertiliser bonds - issued by it in an earlier year in lieu of subsidy
 dues) in two equal tranches during 2010-11 and 2011-12 through Reserve
 Bank of India and also decided to share atleast 50% of the loss on such
 sale of fertiliser bonds. Accordingly the Company has sold 50% of the
 fertiliser bonds of each coupon rate held (aggregate face value of
 Rs.49,886.45 lakhs) on 31st March 2011 and accounted for a loss of
 Rs.7,435.51 lakhs. The Company has also recognised 50% compensation
 receivable from Government of India amounting to Rs.3,717.76 lakhs.
 Consequently Mark to Market provision of Rs.6,888.58 lakhs made in
 respect of these bonds have been reversed. In respect of unsold bonds,
 the Company continues to value the same at the current market price
 pending confirmation on the price and timing of sale by Government of
 India.
 
 VIII.  Other Matters
 
 a) Based on the information available with the Company, there are no
 dues/interest outstanding to Small and Micro Enterprises as at March
 31, 2011.
 
 b) Sales are net of discounts, other than usual trade discounts, Rs.
 7,229.58 lakhs (2010: Rs. 5,804.59 lakhs).
 
 c) The net difference in foreign exchange (i.e., difference between the
 spot rate on the dates of the transactions and the actual rate at which
 the transactions are settled / appropriate rates applicable at the year
 end) debited to the respective heads of account in the Profit and Loss
 Account is Rs.5,780.65 lakhs (2010: Rs. 8,915.14 lakhs credit ).
 
 d) Exchange difference in respect of forward exchange contracts to be
 recognised in the Profit and Loss Account in the subsequent accounting
 period is Rs. 1,199.91 lakhs debit (2010: Rs. 153.03 lakhs debit).
 
 f) Land - Lease deed in respect of land admeasuring 9.80 acres taken on
 lease from Visakhapatnam Port Trust by the erstwhile GFCL, is pending
 execution.
 
 g) The Ordinary shares of Tunisian Indian Fertilizers S.A., Tunisia
 (TIFERT) held by the Company and included under Investments (Schedule
 6) have been pledged to secure the obligations of TIFERT to their
 lenders.
 
 h) During the year, the Company has made political donations of Rs. Nil
 (2010: 25.00 lakhs to Telugu Desam Party and Rs 15.00 lakhs to
 Prajarajyam Party ).
 
 i) The proportionate share of Assets, Liabilities, Income and
 Expenditure of Joint venture Companies, Coromandel Getax Phosphates Pte
 Ltd (Coromandel Getax), Coromandel SQM India Private Limited
 (Coromandel SQM) and Tunisian Indian Fertilizers SA (TIFERT) are given
 below:
 
 IX. Previous years figures have been regrouped/ reclassified
 wherever necessary to conform to the classification adopted for the
 current year.